Construction source materials prices begin to drop

The prices of the leading construction source materials are beginning to fall in international markets. Iron ore, steel scrap, and PVC materials have registered downward variations during the last weeks, after reaching historical levels due to the crisis generated by the COVID-19 pandemic.

Business people consulted by Diario Libre indicated that it is expected that the downward trend will continue and, with this, an effect on the prices of the housing units at the consumer level will be crystallized.

Recently, the Dominican Association of Home Builders and Developers (Acoprovi) pointed out that the increases in the primary materials used in the construction sector had raised by 31.5% the costs of the real estate projects in execution.

Construction has been one of the sectors most affected by the inflationary increases, which is why it has been in the Government’s focus, within the framework of the discussion tables of special measures to face the international price crisis.

Sources consulted pointed out that the downward trend registered by the primary materials of the construction sector, together with the reactivation of the production levels of these raw materials, should be reflected within a few weeks in the price levels of housing.

There are 196 proposals from the roundtables.
In the meantime, proposals continue to be presented at the sectoral roundtables for the price crisis, set up by President Luis Abinader more than a week ago. The Minister of Economy, Planning, and Development, Miguel Ceara Hatton, revealed this Wednesday that almost 196 proposals had been received from the unions, associations, and social actors that are part of the tables.

The official explained that the Ministry of Industry, Commerce, and Mipymes -the institution in charge of compiling the proposals- analyzed them and that there are interesting and very positive aspects that raise issues of temporary and very focused subsidies, as well as revision of tariffs, liberalization of encaje, zero bureaucracy and prevalent markets, as he indicated through a press release.